Auto component maker Spark Minda group flagship firm, Minda Corporation Ltd today said it has formed a joint venture with China's Shandong Beiqi Hai Hua Automobile Parts Co (SBHAP).
The 50:50 joint venture, to be known as Minda China Plastic Solutions Ltd, is being formed between Minda KTSN, a 100 per cent subsidiary of Minda Corp and the Chinese partner, the company said in a BSE filing.
"This joint venture shall initially focus on producing and selling products such as plastic oil pans and cylinder head along with other plastic under-bonnet/interior parts," it added.
The total investment of the JV will be $1.25 million (around Rs 8.35 crore). The total registered capital of the JV would be USD 0.5 million of which, Minda KTSN and SBHAP, a BAIC group subsidiary, shall contribute for 50 per cent of the equity interest in the JV from both parties, the company said in the filing.
The JV will also have the rights for production and marketing of Minda KTSN products within China. The start of production is expected in next 12 to 15 months. It will target global orders of major OEMs (such as VW, BMW and Daimler) having their manufacturing plants in China.
Spark Minda has joint ventures and technical collaborations with a variety of global firms, including Furukawa of Japan, Stoneridge of US, VAST Access System of US, Silca of Italy and UzAvtosonat of Uzbekistan.
Minda has plants in Germany, Poland and Czech Republic for products such as plastic interior trims and subsystem, Kinematic Modules and structural modules, among others. It is also in the process of setting up plant at Queretaro, Mexico for plastic interior parts.